Inflation and supply chain drama pushing logistics firms to go agile

Noam Berda

LOGISTICS firms are growing increasingly nervous. While international supply chains remain in disarray, an inflation shock is now adding to the worries. Petrol prices in the Philippines have hit an all-time high. Interest rates are on the rise, making companies pay more for the same loan and reconsider the purchasing or leasing of additional assets.

Few expected the various challenges caused by the pandemic to continue well into 2022. They are affecting distributors as well as local stores where products are missing on the shelves or arrive late. Irregular demand patterns add to the unreliable supply, as Southeast Asia’s consumers buy more online. The gross merchandise value of the region’s Internet economy has risen 49 per cent in 2021 and is expected to surpass US$360 billion by 2025, according to a report by Google, Temasek and Bain.